money and inflation. When analysing the full sample of countries we find a strong positive relation between the long …-run inflation and money growth rate. The relation is not, however, proportional. The strong link between inflation and money growth … is almost wholly due to the presence of high (or hyper-) inflation countries in the sample. The relationship between …

countries with high inflation, the output effects of monetary policies are significantly reduced. A lot of variation in the …

-linear features. In order to do so, we develop a Markov switching model and apply it to a sample of low and high inflation countries …. The empirical analysis shows that for the high inflation countries the relationship between news in the fundamentals and … the exchange rate changes is stable and significant. This is not the case, however, for the low inflation countries, where …

Recent literature suggests that long-run averages of growth and inflation are only weakly correlated and such … correlation is not robust to exclusion of extreme inflation observations; inclusion of time series panel data has improved matters …, but an aggregate parametric approach remains inconclusive. We propose a nonparametric definition of high inflation crises …